Energy Price Cap Simulator

Should I fix my energy prices or stay on a variable rate tariff?

Ofgem will review the energy price caps every three months, this will determine the unit cost and standing charge rates for variable rate tariffs.

Due to unprecedented rises in the price of energy, the government has put in place the Energy Price Guarantee, which will fix the price cap rates but only until April 2023.

The guarantee limits how much suppliers can charge you for each unit of electricity and gas you use, along with standing charges. The £2,500 per year figure you see quoted is based on what a 'typical' household would pay over a year. If you use greater than that, you will be charged more.

How to use the Energy Price Cap Simulator

There are five periods below which you can use to simulate the price caps for the coming up year.

For example, you could adjust the April 2023 price cap to increase by 50%, then increase the July 2023 price cap by 20%, and keep the October 2023 price cap the same at 0%.

Why is this helpful? If you fix it now, you'll likely be paying higher rates than the variable tariff rates until April 2023. This period includes the cold winter months of November and December where your energy usage is typically higher.

The question is whether you think the April and subsequent price cap reviews will raise the rates higher than your fixed tariff rates and if the extra you’ve paid on the fixed rate tariff will even out, so that overall you would have paid less, compared to being on the variable tariff rates for the same period of time.